HIPAA (Health Insurance Portability and Accountability Act)

The HIPAA Act, passed in 1996, imposes strict controls on any business that handles, maintains, stores, or exchanges a patient’s health records or other related medical information. The Act is wide-reaching and regulates organizations such as hospitals, doctors and other healthcare providers, health and life insurance companies, employers who maintain employee health records, public health agencies, organ donation banks, pharmacies, long-term care facilities, and medical billing firms and clearinghouses.   Penalties for the intentional and unauthorized disclosure of a person’s medical/health information are stiff with up to a $250,000 fine and a possible 10 year jail sentence. 

• HIPAA Section 164.312:  Puts safeguards in place for the storage and maintenance of any individual’s medical/health information.  Organizations are required to guarantee confidentiality, integrity and availability of all protected electronic data it creates, receives or transmits.
• HIPAA Section 164.312(e):  Mandates the use of security measures such as encryption, to protect electronic health records from unauthorized access or possible tampering during transmission over electronic networks.
• HIPAA Section 164.312:  Establishes strict rules and regulations regarding user access to another person’s records, authentication and data protection.
• HIPAA Section 164.308:  Requires organizations to put contingency plans in place should an emergency arise which may damage the systems used to store health records and associated data.   These contingency plans must include the ability to maintain retrievable copies of electronic data and restore all lost data.
• HIPAA Section 164.312(b):  Establishes controls over the auditing of electronic messages including the delivery or manipulation of data as well as when systems were accessed by administrators.

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